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Need the Deferred Depreciation Expense calculation to be (Corp book-Tax book) * 22.5%

edited Apr 10, 2025 9:18AM in Assets

The corp book used depreciation method STL, and the tax book use declining method.

The deferred depreciation expense calculation is (Corp book-Tax book), but according to the country's law, the calculation must be ((Corp book-Tax book) * 22.5%)

So, the journal entry will be:

DR/ Deferred depreciation expense ((Corp book-Tax book) * 22.5%)

CR/ Deferred accumulated depreciation ((Corp book-Tax book) * 22.5%)

Any idea or workaround is highly appreciated.

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